Positioning to capture Indian woman’s heart

Abbas Dhuliawala (12)Prashant Avahad (1)Jinesh Kantharia (19)Yogesh Tambe (49)Akshay Bhat (7)Ashwin Taware (50)

Brand Introduction – Case BackgroundGoldPlus & Tanishq with Karat Meter.Consumers buying behavior & Situation AnalysisMarketing MixCurrent ScenarioMarket Segmentation Repositioning TanishqSWOT AnalysisFacts & Figures Trivia

Started in JULY,1994.

TANISHQ - TATA Group - Subsidiary of Titan Industries Ltd collaboration with TIDCO.

Titan promoted jointly by Questar Investments Limited Incorporated in July 1984 in Chennai, was started in technical collaboration with France Ebauches with a 25% share of the total domestic market. Renamed as Titan Industries LTD in 1995

Tanishq - headquarters in Banglore & factory Located in Hosur (Tamil Nadu) is in 12500 Sq Meter amounting to Rs. 400 M. Presence in 83 Cities

6 brands, Tanishq, Gold +, and ZOYA, MIA , Diva & Aria

TANISHQ (TA – TATA and NISHQ gold coin or necklace in Sanskrit) name was coined by Xerxes Desai MD of TITAN.

Indian Gold Market - unorganized with few players like TBZ and Mehrason’s.

Indian Jewellery market was valued at Rs 400 B with around 3.5 lakh players.

Bhaskar Bhat (MD) C K Venkataraman

Govt Control act of 1962

For the first 3 years Tanishq ran into loss which was admitted by Jacob Kurain – COO "Tanishq, as a concept, was far too ahead of its times.“

First profit in the year 1999

Certified under ISO 9001:2008 Quality Management System Standards & Current version of Environment Management System Standard is ISO 14001:2004.

Pioneered the concept of branded jewellery and ornaments in India.

In Nov 2012 150th Showroom was opened & currently Tanishq has 165+ Stores in India.

Golden Harvest

18-carat gold range, with designs borrowed heavily from contemporary European brands.

Gold Plus caters to Smaller towns and Rural markets

The Tanishq portfolio comprises of a wide range of jewellery, including 18- carat studded products, 22- carat plain-gold products, silverware and coins

Launch of Concept Stores worth costing of 10Cr in kolkata to Harmonize the tradition of past with modernmity of the present.

Gold Gift Scheme- Say thanks in Gold. – Coins were given to maruti to be distributed to car owners.

First boutique in Chennai with a limited inventory

Karatometer was imported from Germany with the cost of 10L rupees.Annutara CSMM – Customer Satisfaction Measurement Management

which tracked the customers feedback on quarterly basisUses shop in shop concept which reduces distribution cost.

Standard Gold Price across Tanishq Stores

Zoya creations - world-class quality crafted in India and abroad. Stores in 2 cities, Delhi and Mumbai in India.

Profit margins on diamond jewellery is estimated to be about 2.5 times higher than that of gold.

Tanishq’s jewellery sales touched Rs 8,108 crore, of which diamond jewellery accounted for 30% in 2013-14 in India

Competitors

CARBON – in early 1991 banglore based pealkok jewelers was incorporated and then they later introduced a brand as Carbon in 1996

GILI- introduced in 1999. Lifestyle and Departmental , College campus through banners

NakshatraDdamasTBZRelinace JewelsKalyan JewellersJoyalukkas

A precious metal.

Part of Indian culture and an inseparable part of our belief system and it is passed down through generations

Purchased gold jewellery for the purpose of investment and it helps them at the time of emergency

Tanishq has focus on “Jewelry for adornment” in the major cities and towns

Perception of Jewelry - As an adornment / Investment

Most of the consumers are female as jewellery is mainly preferred and worn by women consumers.

Status symbol - Serves many functions and female wearing it, has several implications.

At a minimum, an Indian bride contained at least two bangles, a gold necklace, earrings, a ring and a nose pin

Purchase Occasions

Consumer attitude towards GOLD

Consumer Research Purchase Triggers -- When the price of gold fell or was discounted on the onset

of festivals Birthdays , anniversaries and weddings or any religious occasions Primary consideration :- Quality (22-Karat) A trusted individual with good reputation Jeweler considered who can provide purity with

look, finish, color and craftsman ship

Pride and admiration For husband dead investment, same time wives wearing jewelry as it was their status

Younger Vs Older research College girls and younger crowds attracts towards

light weight, delicate western styles, simple and elegant Crowd awareness about Tanishq 18 and 22-karat Offerings and purity Older visitors felt it was very costly and their

was no bargaining – Standard Pricing

Challenges Faced

Comes with product “Adornment the body and mind”

Their studded jewelry was distinctly western in style and design.

The gold used, to make kind of jewelry was based on 18-karat gold because 22-karat gold was too soft to hold gemstone

The gold market was based on 22-karat gold and anything lower considered junk.

Consumers were stuck on 22-karat jewelry as they did not perceive 18-karat jewelry suited for weddings and festivals

Selling plain gold jewelry moved Tanishq from consumer because markup for gold 15% to 25 %

Local jeweler markup was 5% to 15%, because they were providing under-karatge jewelry.

Piloted an offering 22-karat plain gold jewelry, with about 400 designs, Additional 1000 designs in 18-karat diamond studded jewelry.

Launched multimedia campaign Television and press focused on the most traditional designs Inaugural offer to attempt increase walk-ins and purchase

Pioneer the karat meter Tanishq was based primarily on quality and purity, Karat meter a machine that, in three minute measured the karatage of

gold

The press campaign Confronted the under-karatage problem in using bold stark images, subsequent ads reinforced the quality of tanishq Invoking the TATA tradition trust.

Walk-in numbers shot up Finally established a beachhead in the 22-karat gold jewelry market and

hit in the 100 corers mark as brand.

Overcoming Tanishq Challenges

Product Mix or Marketing Mix Concept – 4Ps

What is product Mix or Marketing Mix Concept – 4Ps? Marketing is simply defined as ‘putting the right product in the right place, at

the right price, at the right time.’ MARKETING mix is an excellent way to help ensure that ‘putting the right

product in the right place,…’ Executed through the 4 P’s of marketing: Price, Product, Promotion, and Place

Below steps help to define marketing mix:

• Identify your target market. • Determine what the target consumer desires. • Assess whether you have any advantages over your competition in delivering the

desired service. • Choose the position that is most valued by the consumer.

Customer Oriented 4 C’s

Product to Customer Solution Price to Customer Cost Promotion to Customer Communication Place to Customer Convenience

Value proposition - Cultivate trust by educating customers about the unethical practices in the business

Retailing Designs became more ethnic Gold jewelry was bought for value and not design Increasing penetration in the domestic markets Going abroad in order to diversify its revenue portfolio Change the perception of jewellery as a high-priced purchase. Emphasis had to be on design In-house design team and also outsourced designs from freelance

designers. Based its gold prices on international exchange prices Tied up with Countrywide Finance for providing pre-approved credit

line to the customers at selective outlets.

Strategies

PROMOTION, ADVERTISING & PUBLIC RELATION

Promotion Free gold coin offer Get Gold free with Diamonds Pre-booking scheme

Advertising Brand Ambassador of the Product T V Advertisement Print advertisement

Public Relation Bollywood tie-up

Current Scenario

Change of Government Policy in Dec 2015 JV Swiss Luxury jewelry & watch company Will open 5 outlets Plans to open up 33 new stores Opportunity for business to grow as gold price has reduced

Market Segmentation

Niche Marketing – After its inception in 1995 focus on exports, Tanishq’s designs had been conceptualized for the Western markets and were introduced in India without any alterations. Tanishq positioned itself as an international brand for the Indian elite. The brand was targeted at a niche market (However they later on started targeting the mass marketing since 1997).

Psychographic Segmentation – Life Style: Tanishq has found that 40% of the Indian women are working and they targeted this segment with a specific group of products called collection- G, a 9-to-5 jewellery for the working women.

Market Segmentation Contd…

Geographical Segmentation – Titan realized that, given the diverse nature of Indian ethnicity. It would have to satisfy the tastes of all regions. So, the designs became more ethnic. Titan also decided to transpose designs by stocking

Bengali designs in DelhiKeralite designs in Tamil NaduTypical designs from Tamil Nadu in Bombay in order to appeal to a variet

y of people.

Jewellery Market Segmentation & Stats

Brand Repositioning

Started with focus on more Western consumer resulting in “Nice, but not for me” reaction from Indian women.Tanishq consumer: 1998 Research

•Purchase triggers•Quality (22-karat). •Trust•Age group of typical consumer.

Tanishq consumer: 2000-2001Research•Consumers still had immense faith in their family jeweler•Dual target group: Traditional mother and modern daughter

Brand valuation exercise in 2004•Why people preferred Tanishq?

Based on this survey many new collections were launched.•Daytimes: Reposition diamonds as affordable, casual, young &

contemporary•Colors: Colored jewelry to correct the perception that Tanishq had only

modern designs•Aarka: High fashion 22-karat gold collection aimed to position Tanishq’s

design and image leadership. It was a JV with Sabyasachi Mukherjee.•Aamra: Traditional studded jewelry collection.•Wedding and festival collection also launched.

Sales exceeded the ambitious target of Rs. 550 crore and closed at Rs. 570 crore.

Introduction of GoldPlus in 2005•Started with an aim to cater to semi-urban and rural market.•Ethnic design plain gold jewelry at competitive price.•Test market at Erode and Ratlam.•Using Tata name aggressively in promotions and communications.•Positioning GoldPlus in such a way that it does not confuse the consumers and does not result in cannibalization.

STRENGTHS

Strong backing of the Titan Industries of the Tata Group and TN Govt. Standard gold pricingInnovative & Modern Styles, Award winning designsCompetitive pricesCaters to all market segments with sub-brandsRetail Chain in 83 Indian cities Excellent & outstanding advertisement strategyInformation TechnologyCredit Line

WEAKNESS

Negative perception – Brand was only for the rich “Not For Me”Gold Purchase RitualsGold Perceptive – No Credible for value Estimation, not a perfect HedgeLimited Global presence as compared to other International brands : Mont Blac,De BeersTough Competition from other Jewelry brands - means limited scope of growth.

Globalization98-99% of potential Indian gold market Cross Branding the market to own a larger shareAcquisitions of smaller business to increase brand position and reachTie-ups with Corporates and Business PartnersPLATINUM SALES RISINGJewelries for MenDiversification from Jewelry to other Gold Products like writing pens, car interiors & accessories, Aircraft interiors, Eyewear & cutlery, Dentistry - TAAIAHighly Ethical Corporate Player.Stats says that 1 Billion new customers by 2020EAST ASIA – Growing Market

OPPORTUNITIES

Competition from traditional jewelers Factors Affecting Gold Market Globally (PESTLE)Increasing gold price affecting the low end customers Govt. Regulations, Policies ,Taxes.Gold Significance(Importance of Gold) .Trends Changing quickly hence innovations and R&D are investments

THREATS

Facts & Figures TRIVIA

Facts & Figures TRIVIA Contd..

Gold Demand Trends Full Year 2015

Thank You !

Reference Sources

Harvard Business School Case Study - Das Narayandas, Kerry HermanWikipedia : https://en.wikipedia.org/wiki/TanishqGold.org : http://www.gold.org/jewellery/india-market

http://www.gold.org/jewellery/about-gold-jewelleryAmerican Bullion : https://www.americanbullion.com/